Reduce annual market basket updates for Medicare providers beginning in 2011.

Provide Medicare payments to qualifying hospitals in counties with the lowest quartile Medicare spending for 2011 and 2012.

Freeze the income threshold for income-related Medicare Part B premiums for 2011 through 2019 at 2010 levels, and reduce the Medicare Part D premium subsidy for those with incomes above $85,000/individual and $170,000/couple.

Create an Innovation Center within the Centers for Medicare and Medicaid Services.

“A better Medicare program, with a range of personal choice and a system of governance broadly similar to the FEHBP, will give Medicare patients control over the flow of dollars and freedom to make decisions about how they access medical services. This will stimulate intense market competition among plans and providers, control costs, and promote rapid innovation and higher productivity through the efficient delivery of quality care, thus guaranteeing value in return for retiree premiums and taxpayer dollars. Strong budgetary controls will back up the competitive structure, ensuring that the Medicare program remains affordable. Most important, these reforms will promote personal freedom of choice as well as stable and reliable health insurance.”

“What they found calls into question the assumptions that health policy wonks have been making for years: While Medicare indeed spends almost twice as much more per patient in McAllen than in El Paso, Blue Cross spends about the same in both places. In fact, Blue Cross’s per-patient spending was actually slightly lower in El Paso. These findings persisted for overall spending, as well as for spending on specific types of services and several specific diseases.”

“The coauthors argue that a more sustainable, marketbased, and patient-centered version of health reform must instead convert existing defined benefit promises into ‘defined contributions’ that individuals and their families then can use to enroll in coverage arrangements of their choice. Capretta and Miller recommend that Medicare subsidies should no longer hide the true cost of promised benefits but provide beneficiaries incentives to obtain the most value for them. They find that a move to replace both traditional Medicaid assistance and the tax preference for ESI with defined contribution payments would open up new possibilities for explicit and beneficial coordination between the Medicaid program and the coverage normally offered to working-age Americans.”

“In the midst of the legislative debate over
the Patient Protection and Affordable Care Act
(PPACA), Speaker Pelosi famously said, “We have to
pass the bill so that you can find out what’s in it.”
Indeed, the 112
th
Congress must find out what is in the
law before irrevocable damage is done to our care
delivery system, private health insurance, and the
federal budget deficit. Oversight hearings should begin
immediately as the Obama Administration has abused
the traditional rulemaking process to limit public
comments from key stakeholders and the American
people. We recommend the following five areas for
oversight hearings in the 112
th
Congress.”

ObamaCare created an unworkable cost-control method when it proposed Accountable Care Organizations to manage care in Medicare. Medicare’s payment board is predicting that they will have negative consequences and is calling for them to be pared back. 

ObamaCare is premised on the assumption that government-run systems lower costs better than patient-centered health care. “Private insurance plans might be better at controlling healthcare costs than Medicare, according to a Health Affairs study released Tuesday morning.”